The Company sponsors a noncontributory defined benefit pension plan, under which participation and benefit accruals ceased as of December 31, 1996. The Company’s funding policy is to contribute annually to the plan an amount not less than the minimum required contribution, as determined annually by consulting actuaries in accordance with funding standards imposed under the Internal Revenue Code of 1986, as amended. No contributions were made or required in 2020 or 2019. The Company does not anticipate that a contribution will be required in 2021. The plan’s accumulated benefit obligation and projected benefit obligation are substantially the same since benefit accruals have ceased. The accumulated benefit obligation was $28,226 and $28,020 at December 31, 2020 and 2019, respectively. There is no additional minimum pension liability required to be recognized.

The Company provides retiree medical benefits, consisting of the opportunity to purchase coverage at subsidized rates under the Company’s group medical plan. Employees eligible to participate must (i) have been employed by the Company and enrolled in the Company’s group medical plan as of December 31, 2004 and (ii) retire from the Company between ages 55 and 65 with at least 15 years of service or 70 points (points determined as the sum of the employee’s age and years of service). The Company periodically determines the portion of the premiums to be paid by each retiree and the portion to be paid by the Company. Coverage ceases when a retiree attains age 65 and is eligible for Medicare. The Company contributed $214 and $151 to the plan in 2020 and 2019, respectively; the Company expects to contribute approximately $360 in 2021.

The Company accounts for its obligations related to retiree benefits in accordance with ASC 715, “Compensation – Retirement Benefits.” The assumed rate of increase in the per capita cost of covered benefits (i.e., the health care cost trend rate) for 2021 is 5.4%. Increasing or decreasing the assumed health care cost trend rates by one percentage point in each year would not materially increase or decrease the accumulated post-retirement benefit obligation or the service and interest cost components of net periodic post-retirement benefit costs as of December 31, 2020 and for the year then ended.

In 2020, the Company offered a voluntary early retirement window program (referred to as the “VERP”) to eligible employees. Among other items, participants in the VERP received accelerated payouts from the Company’s defined benefit pension plan, retiree medical benefits on terms substantially identical to those applicable to other retirees, and other cash payments. Cash payments are a noninterest expense and are included in the “Restructuring charges” line item on the Consolidated Statements of Income. Amounts attributable to accelerated payouts from the defined benefit pension plan and post-retirement health benefits for participants in the VERP are included in the following tables.

Information relating to the defined benefit pension plan maintained by Renasant Bank (“Pension Benefits - Renasant”) and to the post-retirement health and life plan (“Other Benefits”) as of December 31, 2020 and 2019, including amounts attributable to participants in the VERP, is as follows:


	Pension Benefits Renasant						Other Benefits
	2020			2019			2020			2019
Change in benefit obligation
Benefit obligation at beginning of year	$	28,020		$	24,945		$	707		$	881
Service cost	—			—			6			7
Interest cost	984			1,176			13			31
Plan participants’ contributions	—			—			52			60
Amendments(1)	—			—			486			—
Actuarial loss (gain)	3,239			3,671			21			(60)
Benefits paid(1)	(4,017)			(1,772)			(266)			(212)



Benefit obligation at end of year	$	28,226		$	28,020		$	1,019		$	707
Change in fair value of plan assets
Fair value of plan assets at beginning of year	$	28,585		$	25,206
Actual return on plan assets	5,981			5,151
Contribution by employer	—			—
Benefits paid	(4,017)			(1,772)




Fair value of plan assets at end of year	$	30,549		$	28,585
Funded status at end of year	$	2,323		$	565		$	(1,019)		$	(707)
Weighted-average assumptions as of December 31
Discount rate used to determine the benefit obligation	2.44		%	3.59		%	1.77		%	2.91		%

The discount rate assumptions at December 31, 2020 were determined using a yield curve approach. A yield curve was developed from a selection of high quality fixed-income investments whose cash flows approximate the timing and amount of expected cash flows from the plans. The selected discount rate is the rate that produces the same present value of the plans’ projected benefit payments.


	Pension Benefits Renasant									Other Benefits
	2020			2019			2018			2020			2019			2018
Service cost	$	—		$	—		$	—		$	6		$	7		$	8
Interest cost	984			1,176			1,043			13			31			31
Expected return on plan assets	(1,651)			(1,450)			(2,077)			—			—			—
Prior service cost recognized(1)	—			—			—			485			—			—
Recognized actuarial loss (gain)	349			442			328			(90)			(23)			—
Settlement/curtailment/termination losses(1)	567			—			—			—			—			—
Net periodic benefit cost	249			168			(706)			414			15			39
Net actuarial (gain) loss arising during the period	(1,090)			(31)			(173)			21			(60)			(240)
Net Settlement/curtailment/termination losses(1)	(567)			—			—			—			—			—
New prior service cost(1)	—			—			—			485			—			—
Amortization of net actuarial (loss) gain recognized in net periodic pension cost	(349)			(442)			(328)			90			23			—
Amortization of prior service cost(1)	—			—			—			(485)			—			—
Total recognized in other comprehensive income	(2,006)			(473)			(501)			111			(37)			(240)
Total recognized in net periodic benefit cost and other comprehensive income	$	(1,757)		$	(305)		$	(1,207)		$	525		$	(22)		$	(201)
Weighted-average assumptions as of December 31
Discount rate used to determine net periodic pension cost	3.59		%	4.56		%	3.96		%	2.91		%	4.07		%	3.37		%
Expected return on plan assets	6.00		%	6.00		%	6.00		%	N/A			N/A			N/A

(1) Attributable to retiree medical benefits and accelerated defined benefit pension plan payouts provided to VERP participants and, with respect to amounts included in Net periodic benefit cost, included in the “Restructuring charges” line item on the Consolidated Statements of Income.

Substantially all of the assets of the Company’s defined benefit pension plan are invested in a collective trust, which in turn invests in other collective or pooled trusts with individual investment mandates. The collective trust’s asset allocation is approximately 55% in growth assets, consisting of interests in trusts invested in equity securities, high yield fixed income securities, and direct real estate investments (approximately 5% of assets), and approximately 45% in assets intended to hedge against the volatility arising from interest rate risk, consisting of interests in trusts invested in long duration fixed income securities. The collective trust is actively managed allowing changes in the asset allocation to enhance returns and mitigate risk, with the mandate to preserve the funded status of the plan through portfolio growth and interest rate hedging. Management’s investment committee periodically reviews the collective trust’s performance and asset allocation to ensure that the plan’s investment objectives are satisfied and that the investment strategy of the trust has not materially changed.

The expected long-term rate of return was estimated using market benchmarks for investment classes applied to the plan’s target asset allocation and was computed using a valuation methodology which projects future returns based on current valuations rather than historical returns.

The fair values of the Company’s defined benefit pension plan assets by category at December 31, 2020 and 2019 are below. Investments in collective trusts, which are measured at net asset value per share (or “NAV”), consist of trusts that invest primarily in liquid equity and fixed income securities and have a small direct investment in real estate. There is generally no restriction on redemptions or withdrawals for benefit payments or in the event of plan termination; 60 days notice is required to redeem or withdraw assets for any other purpose.


	Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Measured at NAV		Totals
December 31, 2020
Cash and cash equivalents	$	779	$	—	$	—	$	—	$	779
Investments in collective trusts	—		—		—		29,770		29,770






	$	779	$	—	$	—	$	29,770	$	30,549


	Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Measured at NAV		Totals
December 31, 2019
Cash and cash equivalents	$	39	$	—	$	—	$	—	$	39
Investments in collective trusts	—		—		—		28,546		28,546






	$	39	$	—	$	—	$	28,546	$	28,585

The Company maintains a 401(k) plan, which is a contributory plan maintained in the form of a “safe harbor” arrangement. Employees are immediately enrolled in the plan and eligible to make pre-tax deferrals, subject to limits imposed under the plan and the deferral limit established annually by the IRS, and receive Company matching contributions not in excess of 4% of compensation. The Company has also made a profit-sharing contribution for each eligible participant in an amount equal to 5% of plan compensation and 5% of plan compensation in excess of the Social Security wage base. To be eligible to receive this profit-sharing contribution, an employee must: (i) be employed on the last day of the year and be credited with 1000 hours of service during the year; (ii) die or become disabled during the year; or (iii) have attained the early or normal retirement age (as defined in the plan). With respect to the year ended December 31, 2019 and prior years, the Company’s profit-sharing contribution was nondiscretionary. Effective as of January 1, 2020, the Company amended the 401(k) plan to make the profit-sharing contribution discretionary for years ending after December 31, 2020. The Company’s costs related to the 401(k) plan, excluding employee deferrals, in 2020, 2019 and 2018 were $17,888, $16,009 and $13,477, respectively.

The Company maintains two deferred compensation plans: a Deferred Stock Unit Plan and a Deferred Income Plan. Nonemployee directors may defer all or a portion of their fees and retainer; eligible officers may defer base salary and bonus subject to limits determined annually by the Company. Amounts deferred to the Deferred Stock Unit Plan are invested in units representing shares of the Company’s common stock; benefits are paid in the form of common stock, with cash distributed in lieu of fractional shares. Amounts deferred to the Deferred Income Plan are notionally invested in the discretion of each participant from among investment alternatives substantially similar to those available under the Company’s 401(k) plan. Directors and officers who participated in the predecessor to the Deferred Income Plan as of December 31, 2006, may also invest in a preferential interest rate alternative that is derived from the Moody’s Average Corporate Bond Rate. Benefits payable from the Deferred Income Plan equal the account balance of each participant. Beneficiaries of directors and officers who have continuously deferred at rates prescribed by the Company since January 1, 2005, and who die while employed by the Company or serving as a director may receive an additional preretirement death benefit from the Deferred Income Plan.

In connection with its acquisition of Brand Group Holdings, Inc. and its affiliates, the Company assumed the Brand Group Holdings, Inc. Deferred Compensation Plan. Deferral elections in effect as of the time of acquisition were given effect for compensation earned during 2018; no further deferrals have been or will be made to the plan. Account balances maintained under the plan will be distributed as provided under the terms of the plan and individual participant elections. Pending distribution, balances will be notionally invested by each participant in designated investment alternatives.

The Company’s Deferred Stock Unit and Deferred Income Plan are unfunded. It is anticipated that such plans will result in no additional cost to the Company because life insurance policies on the lives of participants have been purchased in amounts estimated to be sufficient to pay plan benefits. The Company is both the owner and beneficiary of the policies. The expense recorded in 2020, 2019 and 2018 for the Company’s Deferred Stock Unit and Deferred Income Plan, including in 2019 expense for the plan assumed in connection with the acquisition of Brand Group Holdings, Inc., inclusive of deferrals, was $3,965, $3,610 and $1,290, respectively.

In 2007, the Company assumed supplemental executive retirement plans (SERPs) in connection with the acquisition of Capital Bancorp, Inc. and its affiliates. The plans are designed to provide four officers specified annual benefits for a 15-year period upon the attainment of a designated retirement age. Liabilities associated with the SERPs totaled $3,816 and $3,921 at December 31, 2020 and 2019, respectively. The plans are not qualified under Section 401 of the Internal Revenue Code.

Under the Company’s Performance Based Rewards Plan, annual cash bonuses are paid to eligible officers and employees, subject to the attainment of designated performance criteria that may relate to the Company’s performance, the performance of an affiliate, region, division or profit center, and/or to individual or team performance. The Company annually sets minimum, target, and superior levels of performance. Minimum performance must be attained for the payment of any bonus; superior performance must be attained for maximum payouts. The expense associated with the plan for 2020, 2019 and 2018 was $6,425, $4,200 and $5,117, respectively.

In 2020, the Company implemented a long-term equity compensation plan that provides for the grant of stock options and stock appreciation rights and the award of restricted stock and restricted stock units (which replaced the Company’s previous long-term equity incentive compensation plan, under which stock option grants and restricted stock awards remain outstanding).

Options granted under the plan permit the acquisition of shares of the Company’s common stock at an exercise price equal to the fair market value of the shares on the date of grant. Options may be subject to time-based vesting or the attainment of performance criteria; all options expire ten years after the date of grant. Options that do not vest or expire unexercised are forfeited and canceled. Stock appreciation rights may be granted under the plan on terms similar to options. There were no stock options or stock appreciation rights granted during the years ended December 31, 2020, 2019 or 2018. There was no compensation expense (recognized or unrecognized) associated with options for the years ended December 31, 2020, 2019 or 2018.


	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding at January 1, 2018	89,750	$	15.67

Granted	—	—
Exercised	(41,000)	15.54
Forfeited	(5,000)	15.32
Outstanding at December 31, 2018	43,750	$	15.84	2.63	$	627
Exercisable at December 31, 2018	43,750	$	15.84	2.63	$	627

Granted	—	—
Exercised	(14,500)	15.79
Forfeited	—	—
Outstanding at December 31, 2019	29,250	$	15.86	1.94	$	574
Exercisable at December 31, 2019	29,250	$	15.86	1.94	$	574

Granted	—	—
Exercised	(18,750)	16.37
Forfeited	—	—
Outstanding at December 31, 2020	10,500	$	14.96	1.00	$	191
Exercisable at December 31, 2020	10,500	$	14.96	1.00	$	191

The plan permits the award of performance-based restricted stock to executives and other officers and employees and time-based restricted stock to non-employee directors, executives, and other officers and employees. The plan also permits the award of restricted stock units to executives and other officers and employees on terms similar to restricted stock awards. Performance-based awards are subject to the attainment of designated performance criteria during a fixed performance cycle. Performance criteria may relate to the Company’s performance measured on an absolute basis or relative to a defined peer

group. Performance criteria may also relate to the performance of an affiliate, region, division or profit center of the Company or to individual performance. The Company annually sets minimum, target, and superior levels; minimum performance must be attained for the vesting of any shares; superior performance must be attained for maximum payouts. Time-based restricted stock awards relate to a fixed number of shares that vest at the end of a designated service period.

In 2020, the Company made performance-based and time-based restricted stock awards; restricted stock units were not awarded. The fair value of each restricted stock award is the closing price of the Company’s common stock on the business day immediately preceding the date of the award. For restricted stock awarded under the plan, the Company recorded compensation expense of $10,419, $10,046 and $7,251 for the years ended December 31, 2020, 2019 and 2018, respectively. The following table summarizes the changes in restricted stock as of and for the year ended December 31, 2020:


	Performance- Based Restricted Stock	Weighted Average Grant-Date Fair Value		Time- Based Restricted Stock	Weighted Average Grant-Date Fair Value
Not vested at beginning of year	115,725	$	34.00	500,932	$	36.34
Awarded	81,423	35.42		271,957	32.89
Vested	(40,567)	40.89		(161,521)	38.30
Forfeited and cancelled	(23,754)	33.40		(62,952)	35.46
Not vested at end of year	132,827	$	32.88	548,416	$	34.15

At December 31, 2020, an aggregate of 2,871,774 shares of Company common stock were available for issuance under the Company’s employee benefit plans of which 957,320 shares were available for issuance under the Company’s 401(k) plan, 22,577 shares were available under the Company’s Deferred Stock Unit Plan, and 1,758,149 shares were available under the Company’s 2020 Long-Term Incentive Compensation Plan.